Court stops hostile takeover of insolvency appointments (Hunt v Down)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Standing and use of the block transfer procedure
• Grounds for removal
• Case details

Article summary

Restructuring & Insolvency analysis: The applicants had been appointed as liquidators of TRIAP Ltd (the company), which carried on business providing insolvency advice and services on behalf of insolvency practitioners (IPs). They applied in their personal capacity for a block transfer order, transferring all appointments of various IPs, including the sole director and shareholder of the company, along with any appointments that he held jointly with another IP who operated as a consultant to the company. The court held that the applicants did not have standing to bring the application and that in any event there was insufficient evidence before the court to justify the removal of either respondent.